Assume the price of apples increases from $20 to $25 and the quantity demanded falls from 10 tons to 5 tons. 1. Use the total revenue test to determine if the demand is relatively elastic of inelastic. Answer: Price increased and total revenue decreased 50 the demand curve is relatively elastic 2. Calculate the elasticity of demand coefficient. Answer: -50%/25%= -.5/.25= -2 The coefficient is >1 so it is relatively elastic